Brazilians slip up in move for Chiquita as banana group reaffirms support for merger with Irish fruit firm Fyffes
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Chiquita Brands International rejected a £363million bid from juice-maker Cutrale and Safra investment bank.
It labelled the offer ‘inadequate and not in the best interests of Chiquita shareholders’ while reaffirming support for the Fyffes deal.
Merger: Fyffes and Chiquita are set to create a buisness with a total market valuation of £600million
The takeover bid was announced unexpectedly on Monday by Cutrale and Safra, who partnered to derail a tie-up that would make Chiquita-Fyffes the top banana supplier in the world.
Chiquita shares climbed 31 per cent while Fyffes rose 2 per cent to 75p on news the deal would go ahead.
With Fyffes, the world’s oldest fruit brand, Chiquita is set to create a buisness with a total market valuation of £600million.
It will combine Chiquita’s US interests with Fyffes’ strength in Europe, South America and Asia.
Chiquita said it had determined not to enter discussions with the Cutrale-Safra partnership ‘at this time’, fuelling speculation that Chiquita is anticipating further offers in the near future.